A Closing Disclosure is a document provided to homebuyers by lenders at least three business days before closing on a mortgage loan. This document outlines the final terms and costs associated with the loan, including the loan amount, interest rate, monthly payments, closing costs, and any prepaid expenses. The Closing Disclosure helps borrowers understand the financial implications of the loan and ensures transparency in the closing process. By comparing the Closing Disclosure with the Loan Estimate received earlier in the process, borrowers can identify any changes or discrepancies and address them with the lender before closing. The Closing Disclosure is a critical document that enables borrowers to review and confirm the details of their loan before finalizing the transaction.
Some homeowners purchase mortgage points, commonly called “origination points” or “discount points,” to reduce the interest they pay. Most of us will spend the most money on purchasing a home, so anything that might lower the mortgage cost is worthwhile.…
The Closing Disclosure describes the terms of your mortgage loan, including the purchase price, interest rate, estimated property taxes, insurance, closing costs, and other related expenses. You must review all five pages thoroughly as it’s one of the most important…
